At your income level, you should really look into establishing a Defined Benefit Plan (cash balance pension) in addition to a Solo 401k. For someone earning over $600k, this combination can allow you to defer $200k+ in taxes annually in some cases. With a cash balance plan, contribution limits are based on age and income, with older individuals able to contribute more. It's more complex than a standard 401k but the tax savings can be enormous at your income level. The administrative costs are higher (expect $2-3k annually), but the tax savings typically dwarf these expenses. It's surprising how many high-income freelancers aren't aware of this option!

Your situation is unfortunately very normal for high-income freelancers in NYC. That 37% you're seeing isn't just federal income tax - it's the combination of federal income tax PLUS self-employment tax that's hitting you so hard. Here's the breakdown of what you're likely paying: - Federal income tax: Your marginal rate is 37% on income over $609,350 (2025 rates) - Self-employment tax: 15.3% on the first $168,600, then 2.9% Medicare tax continues on all income above that, PLUS an additional 0.9% Medicare surtax on income over $200,000 - NY State tax: Up to 10.9% - NYC local tax: Up to 3.876% When you add it all up, a total effective rate of 45-50% isn't uncommon at your income level. The good news is there are strategies to reduce this burden. Priority #1 should be discussing S-Corp election with your accountant - at your income level, this could save you $15-25k annually in self-employment taxes. You'd pay yourself a reasonable salary (subject to employment taxes) and take the rest as distributions. Also maximize retirement contributions through a Solo 401k ($70k limit for 2025) and consider a SEP-IRA if you haven't already. At your income level, you might even qualify for a defined benefit plan which could allow much higher tax-deferred contributions. The pain is real, but there are legitimate ways to reduce it significantly!

Its wild how everyone in the same batch gets different timeline. feels like playing the lottery at this point smh

Same boat here - batch 05 with codes showing for almost 3 weeks now. The inconsistency is frustrating but at least we're not alone in this. Hoping tomorrow brings some good news for all of us! 🤞

Not sure if this will help you, but make sure your suitability check is complete. I had a delay with my EFIN because my fingerprint cards weren't properly processed. If you submitted fingerprints, call and specifically ask if they were received and processed correctly. This is often a bottleneck. Also, have you considered using ProSeries or another tax software that might allow you to use their EFIN temporarily while yours is being processed? Some have programs for new preparers that might help you get through this tax season without losing clients.

I feel your pain - EFIN delays are incredibly frustrating when you're trying to build a business! In addition to the great suggestions already mentioned, here are a few more things that helped me when I was stuck in EFIN limbo: 1. Document EVERYTHING - Keep a detailed log of every phone call (date, time, representative name if they give it, what they told you). This creates a paper trail that can be helpful if you escalate. 2. Ask specifically about your "suitability determination" status. This is often where applications get stuck, and many phone reps don't volunteer this information unless you ask directly. 3. If you haven't already, make sure you have your Preparer Tax Identification Number (PTIN) active and up to date. EFIN processing sometimes gets delayed if there are issues with your PTIN. 4. Consider reaching out to your local VITA/TCE coordinator if you've done volunteer work with them before. They sometimes have direct contacts within the IRS e-file department. The combination of TAS (as Ava mentioned) and having detailed documentation of your hardship should definitely help move things along. Don't give up - once it's resolved, you'll have your EFIN for future seasons too!

Has anyone actually gotten the penalty waived? My Q2 payment was late because of a family emergency, and I'm wondering if there's any point in trying to explain that to the IRS.

I've been dealing with estimated tax payments for years and the formula can definitely be confusing. Based on your payment schedule, you'll likely face a penalty for the Q2 late payment, but it might not be as bad as you think. The IRS uses Form 2210 to calculate penalties, and the key thing to understand is that they look at each quarter independently. Your March payment was early (which is good), but your June payment being 10 days late will trigger a penalty for those specific days. Here's what typically happens: They'll calculate your required quarterly payment (usually 25% of your total annual requirement), then charge daily interest on any shortfall from the due date until paid. With the current 8% annual rate, that's roughly 0.022% per day. One thing that might help you - if your income is uneven throughout the year, you can use the annualized income installment method on Form 2210 Schedule AI. This lets you calculate required payments based on when you actually earned income rather than assuming equal quarters. Given your varying payment amounts, this might reduce your penalty if your income was lower in Q2. The good news is estimated tax penalties are usually much smaller than people expect - often just a few hundred dollars even for significant timing issues.

My return from last year still isnt processed so count urself lucky its only been 2 weeks 😭

Don't stress about it! Same thing happened to me last year - filed early through TurboTax and panicked when nothing showed up for weeks. The IRS basically puts all early returns on hold until they officially open processing. Once they start accepting returns (which just happened this week), you should see movement pretty quickly. Check WMR again in a few days and you'll probably see it switch to "accepted" status.